CoStar Group Poised for Q1 Earnings Report Amid Mixed Performance

CoStar Group, Inc. (CSGP), based in Arlington, Virginia, specializes in providing information, analytics, and online marketplace services to the commercial real estate sector. With a market capitalization of $29.8 billion, CoStar offers a comprehensive suite of digital services, including leasing and selling marketplaces, sales comparables, decision support tools, contact management, tenant information, property marketing, and industry news updates. The company is scheduled to release its fiscal Q1 earnings for 2025 after the market closes on Tuesday, April 29.

Before the earnings announcement, analysts predict CoStar will report a profit of $0.06 per share. This figure marks a decline of 14.3% from $0.07 per share in the same quarter last year. Despite this projected dip, CoStar has a strong history of exceeding Wall Street’s earnings estimates, achieving this feat in each of the past four quarters. Its previous quarter’s earnings of $0.22 per share surpassed consensus estimates by 29.4%.

For the full fiscal year, analysts anticipate CoStar will post earnings per share (EPS) of $0.73, which represents a significant increase of 35.2% compared to $0.54 in fiscal 2024. Projections suggest further annual growth, forecasting EPS to rise by 87.7% year-over-year, reaching $1.37 in fiscal 2026.

Over the past 52 weeks, CSGP shares have declined by 20.9%. This performance lags behind the S&P 500 Index, which experienced a 1.4% loss, and the Real Estate Select Sector SPDR Fund (XLRE), which rose by 2.2% during the same time period.

CoStar’s Q4 results, released on February 18, showed a surge of 5% in its shares the following day due to better-than-expected performance. The company’s revenue reached $709.4 million, exceeding consensus estimates. Furthermore, the revenue increased by 10.8% year-over-year, marking the 55th consecutive quarter of double-digit growth for CoStar.

This revenue growth was bolstered by solid performance in the CoStar, multifamily, and residential segments. Notably, Homes.com, part of CoStar’s portfolio, has quickly risen to become the second-largest residential real estate marketplace in the United States, adding momentum to the company’s growth. However, despite this revenue increase, the adjusted EBITDA for Q4 fell 14% year-over-year to $111.9 million, contributing to a 38% decline in net income, which amounted to $59.8 million.

Wall Street analysts maintain a “Moderate Buy” rating for CSGP, with a generally optimistic outlook. From a pool of 15 analysts, nine have rated it as “Strong Buy,” two as “Moderate Buy,” three as “Hold,” and one as “Strong Sell.” The average price target for CoStar stands at $85.69, suggesting an 18% potential upside from current trading levels.

On the date of publication, Neharika Jain did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data are presented solely for informational purposes. For further details, please consult the Barchart Disclosure Policy here.

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